harris corporation

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Future estimated amortization expense for intangible assets is as follows:
Total
(In millions)
Fiscal Years:
2012 ................................................................... $ 83.2
2013 ................................................................... 79.0
2014 ................................................................... 66.5
2015 ................................................................... 64.1
2016 ................................................................... 46.7
Thereafter ............................................................... 162.5
Total ................................................................... $502.0
NOTE 10: ACCRUED WARRANTIES
Changes in our warranty liability, which is included as a component of the “Other accrued items” line item in
our Consolidated Balance Sheet, during fiscal 2011 and 2010, were as follows:
2011 2010
(In millions)
Balance at beginning of the fiscal year ..................................... $73.1 $ 65.5
Warranty provision for sales made during the fiscal year ........................ 19.6 28.4
Settlements made during the fiscal year. ....................................
Other adjustments to the warranty liability, including those for acquisitions and foreign
(38.7) (40.3)
currency translation, during the fiscal year ................................. (1.2) 19.5
Balance at the end of the fiscal year ....................................... $52.8 $ 73.1
NOTE 11: CREDIT ARRANGEMENTS
364-Day Revolving Credit Agreement: On September 29, 2010, we entered into a $300 million senior
unsecured 364-day revolving credit agreement (the “364-Day Revolving Credit Agreement”) with a syndicate of
lenders. The 364-Day Revolving Credit Agreement provides for the extension of credit to us in the form of
revolving loans at any time and from time to time during the term of the 364-Day Revolving Credit Agreement, in
an aggregate principal amount at any time outstanding not to exceed $300 million. Borrowings under the 364-Day
Revolving Credit Agreement will be denominated in U.S. Dollars. The 364-Day Revolving Credit Agreement may
be used for working capital and other general corporate purposes (excluding hostile acquisitions) and may also be
used to support any commercial paper that we may issue.
At our election, borrowings under the 364-Day Revolving Credit Agreement will bear interest either at LIBOR
plus an applicable margin or at the base rate plus an applicable margin. The interest rate margin over LIBOR,
initially set at 1.75 percent, may increase (to a maximum amount of 2.25 percent) or decrease (to a minimum
amount of 1.25 percent) based on changes in the ratings of our senior unsecured long-term debt securities (“Senior
Debt Ratings”). The base rate is a fluctuating rate equal to the highest of (i) the federal funds rate plus 0.50 percent,
(ii) SunTrust Bank’s publicly announced prime lending rate for U.S. Dollars or (iii) LIBOR for an interest period of
one month plus 1.00 percent. The interest rate margin over the base rate, initially set at 0.75 percent, may increase
(to a maximum amount of 1.25 percent) or decrease (to a minimum amount of 0.25 percent) based on our Senior
Debt Ratings.
The 364-Day Revolving Credit Agreement contains certain customary covenants, including covenants limiting:
certain liens on our assets; certain mergers, consolidations or sales of assets; certain sale and leaseback transactions;
certain vendor financing investments; and certain investments in unrestricted subsidiaries. The 364-Day Revolving
Credit Agreement also requires that we not permit our ratio of consolidated total indebtedness to total capital, each
as defined, to be greater than 0.60 to 1.00 and not permit our ratio of consolidated EBITDA to consolidated net
interest expense, each as defined, to be less than 3.00 to 1.00 (measured on the last day of each fiscal quarter for the
rolling four-quarter period then ending). We were in compliance with the covenants in the 364-Day Revolving
Credit Agreement in fiscal 2011. The 364-Day Revolving Credit Agreement contains certain events of default,
including: failure to make payments; failure to perform or observe terms, covenants and agreements; material
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